Focus Media Privatization Deal Gets Green Light From Shareholders

NASDAQ-traded Focus Media says today that shareholders have voted to approve a deal to privatize the company, adding to a long list of Chinese companies that have quit foreign exchanges.

Previously announced on December 19 last year, the go-private deal values the Shanghai-based Chinese advertising company at US$3.7 billion at a price tag of US$27.50 per American Depositary Shares (ADS), a premium of 17.6% over its last day’s closing price before the announcement.

The group buying the company includes Focus Media Chairman and CEO Jason Nanchun Jiang, Carlyle Group, FountainVest Partners, CITIC Capital China Partners, China Everbright Structured Investment Holdings, and Fosun International Ltd.

Focus Media says approximately 78.7% of total outstanding ordinary shares voted, and 99.5% voted to approve the deal, which is expected to be completed in May this year. Afterward, Focus Media will become a private company and no longer be traded on Nasdaq.

Focus Media closed the day trading at US$27.20 on Monday.

 

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